Do you wonder how the S&P 500 traded this week? Gapping up on Monday, traders set short positions as we reached the 4019 level on SPX.
We ranged mostly from 4019 on Monday, to the low of the week of 3928, on Thursday. Let's dive deep into our intraday review of SPX!
Monday-Wednesday Review
MONDAY
Traders wasted no time on Monday, as we filled the last gap from Friday. The opening hour started as traders showed buying pressure until the gap from last Thursday was filled.
Once the gap was filled, traders started to sell the s&p, as a reversal looked like it began to take place. Around 9:30 am CST, is where the fun took place for sellers.
We sold off the 4019 level HARD, not showing any signs of holding that 4000 level. We sold into 3982, as that's where Friday's consolidation range was, holding some liquidity there.
This was institutional traders' opportunity to go long, using the previous day's liquidity as rocket fuel, on the retest of the 4000 level. We consolidated trending up, piercing the 4000 level EXACTLY at 4000!
And people say the markets are random lol. Traders saw this opportunity to sell the 4000 level, which they did. This trended for the rest of the day, as traders sold off the s&p right back to 3982 eod.
Tuesday
Oh boy, today was not the greatest trading day for traders. Why? One word, CONSOLIDATION!!! The first 2 hours and 15 minutes was a consolidation period, as we bounced from 3988-3972.
Around 10:30 A.M CST, traders brought SPX back to 3971, as it looked like traders entered long. Our most volatile move happened, as we ran back to 3988 quickly, with an 8-point sell-off bringing it down to 3980.
This was the last dip for buyers, as traders slowly trended SPX upwards to around 3997, getting close to the 4000 level. Traders didn't even bring this up to 4000, before selling SPX for the rest of the day!
The last two hours were straight selling pressure, as not one 15-minute green candle showed.
Traders brought SPX down to 3969 before the session ended on Tuesday.
Wednesday
Wednesday, we were trading like we were in the wild wild west!! Big volatile swings were happening all day, a trader's DREAM.
Ironically, this was the one day I didn't trade. Anyways, we gapped down 11 points at the open at around 3958, which was quickly filled 30 minutes into the open. We filled this gap around 3968, which was where yesterday's liquidity was, as sellers used this liquidity as rocket fuel.
Once we hit the 3968 level, we dropped HARD 26 points to 3943. We dipped into 3939, as traders looked to reverse HARD, bringing SPX right back up to 3968. Back-to-back BIG MOVES, as we weren't done just yet.
As we reached the high of the day back at 3968, traders consolidated for around 4, 15-minute candlesticks. Sellers dropped this hard, right back to 3940, which was an ending to the selling pressure.
Traders trended us slowly up, as we reached 3955, which is where we closed the day at.
Thursday-Friday
Thursday
Thursday was a beautiful trend day, with our only important news coming out this day.
We had our jobless claims report come out, as this came out bullish. We beat the median forecast by 7000 jobs, which is a good sign for our economy. This led to a beautiful trending day, which is a BREEZE for most traders.
Most of us were on the same page today, which was; GO LONGGG!!! The market gapped down at open, to 3929. This was the low of the day, as it looked like traders entered long; and rode it for most of the day.
For the next 4 hours, we consolidated to the 3950 range. We finally saw fireworks, as the buying pressure finally EXPLODED! A 20-point candle kicked off our mid-day run on Thursday.
We retracted back to 3953, as this was institutional traders' last chance to go long. We ran up to 3990, as this was the high of the day. We sold off 8 points, to close at 3982.
Friday
The opening 30 minutes were filled with big swings, as institutional traders are closing their weekly positions today.
We opened at 3997, gapping up from yesterday. We ran to 4014, before traders sold us back into 3997, the final dip before finally holding that 4000 range.
Traders went long, as we ran 20ish points to 4019, our key level from Monday. It's time, to make or break it.
We sold back off to 4011, as traders rejected this key level. Were we going back to 4000? NOPE, as we reached 4011, traders entered long again, BLASTING through the 4019 level.
We traded up to 4025 around 11:30 AM CST, as traders consolidate over the break of 4019. We consolidated for an hour, with buyers still in control as we headed towards 4035.
Last week, we had a gap at the 4050 level that was left unfilled, but today it looks like traders aim to close the gap.
The last hour was filled with buying pressure, as we ended the day at 4049, up 52 points end of the day.
SPX WEEKLY RECAP
With not too much news coming out this week, I knew this would be a ranging week.
We started the week strong, filling the 4019 gaps on Monday. This was a key level, as 4019 was sold off hard, with selling pressure following for most of the week.
No news led to consolidation for most of Tuesday, with a mid-day sell-off following it. Fireworks were happening Wednesday though, as the volatility was INSANE, with 6 20-point runs happening that day.
Thursday was our jobless claims report, which we beat by 7000 jobs! This sent Thursday into a trending day, with slow upwards movement happening throughout most of the day!
Friday, traders closed their position, sending SPX into volatile movements. We gapped up strong, running to 4011, before selling into 3997. This seemed to be traders' last chance to get in going long before the rocket ships take off.
We retested the 4019 range from Monday, with a mini 3-point sell-off following. This was the mini dip before the rip, as we headed towards a gap left unfilled from the previous week at the 4050 level.
We ended the week at 4049, 30 points higher than Monday's open at 4019.
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